3 Great Stock ETFs Run by Exceptional Managers

Core Insights - Star mutual fund managers, who previously avoided ETFs due to daily portfolio disclosures, have increasingly embraced them, possibly due to a shift in comfort with transparency or investor preference for ETFs [1][2] - Active ETFs have attracted nearly $900 billion in new investments, while active mutual funds have experienced over $2.3 trillion in outflows in the past five years, indicating a significant trend towards active ETFs [2] ETF Analysis - The first ETF highlighted is the Gold-rated Troll Price Capital Appreciation Equity ETF (TCAF), managed by David Jaru, known for his successful capital appreciation fund [3][4] - TCAF focuses on companies with strong potential for earnings growth and reasonable valuations, typically favoring growth stocks, particularly in the technology sector, and has outperformed its peers by 60 basis points since its launch in June 2023 [5] - TCAF has a low fee of 31 basis points, enhancing its long-term prospects [6] Oakmark US Large Cap ETF - The second ETF is the Gold-rated Oakmark US Large Cap ETF (OKM), managed by Bill, a legendary value investor from Harris Associates [6][7] - OKM is a subset of holdings from the Oakmark mutual fund, focusing on larger cap stocks, which aids in liquidity and capacity [7][8] - Since its launch in December 2024, OKM has outperformed the Russell 1000 value index by nearly 5 percentage points [8] Capital Group New Geography Equity ETF - The final ETF discussed is the Gold-rated Capital Group New Geography Equity ETF (CGNG), which utilizes a multi-manager approach similar to the successful American Funds New World Mutual Fund [9][10] - CGNG employs a flexible risk-averse strategy, allowing investments in both emerging markets and developed markets firms with significant revenue from emerging economies, resulting in a less volatile portfolio [10][11] - The ETF has outperformed its average category peer since its launch in June 2024, supported by its experienced management team and unique investment approach [11]